Climate 2022: Will rich countries pledge the necessary financing to developing countries?

Climate 2022: Will rich countries pledge the necessary financing to developing countries?
Climate 2022: Will rich countries pledge the necessary financing to developing countries?

Climate 2022: Will rich countries pledge the necessary financing to developing countries?

  • Esme Stallard
  • BBC

Climate 2022: Will rich countries pledge the necessary financing to developing countries?

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British Prime Minister Rishi Sunak pledged to end climate change funding at a conference last year when he was Minister.

The issue of funding is high on the agenda of this year’s COP27 UN Change Summit and will certainly be a hot topic during the negotiations.

Over the past 12 months, developing countries have faced severe climate crises, from floods in Pakistan to droughts in East African countries.

They want developed countries like the United States, the United Kingdom and the European Union to be held accountable for the “losses and damages” they have suffered.

They also want help with the transition to clean energy and infrastructure.

The question is: will these countries be funded? What will countries do with this funding?

Climate finance is broadly divided into three types:

The first type is harm reduction funding. This money is used to help developing countries abandon fossil fuels and other polluting activities.

Many countries still have coal power plants and they are not out of service yet. These countries need support to build clean energy infrastructure and to replace these power plants with others like solar power plants.

The second type is adaptation finance. This money will be used to help developing countries prepare for the worst effects of climate change.

These impacts vary by country’s geographic location, but include:

  • Build stronger defenses against floods.
  • resettlement of the population at risk.
  • Stormproof residential development.
  • Distribution of plants that better withstand periods of drought.

All countries agreed that funds should be allocated to mitigation and adaptation.

However, the third type of funding remains highly controversial. This is referred to as “loss and damage” financing.

These funds are intended to help developing countries recover from the effects of climate change they have already suffered.

These countries receive disaster funding through humanitarian assistance, although this may vary from year to year.

Developing countries want guaranteed compensation from developed countries they believe are historically responsible for climate change.

Despite this, the developed countries consider this (the charge) a non-negotiable issue and say that accepting this charge would be an admission of responsibility for the disasters.

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What money have the countries made available so far?

In 2009, rich nations agreed to allocate $100 billion annually to developing countries for climate action through the end of 2020, and by the end of the same year the total amounted to just $83.3 billion, but the target is expected to be reached in 2023.

Most of those funds, 82 percent, came from the state treasury, while the remainder came from the private sector, according to the Organization for Economic Co-operation and Development.

However, a study commissioned by the United Nations concluded that the private sector could contribute about 70 percent of the total investment needed to meet climate commitments.

Last year it founded the Glasgow Financial Alliance for Zero Net Emissions, which brings together more than 550 private companies, and has so far committed $130 trillion in assets to that agenda.

Are developing countries getting enough money?

Current climate finance pledges are not only not being met, developing countries say these targets are too low.

During last year’s climate summit in Glasgow, the Group of 77 and the Chinese Coalition of Developing Countries called on rich nations to provide at least $1.3 trillion by 2030, saying the money should be split evenly between emissions cuts and climate change preparations .

The latest figures from the Organization for Economic Co-operation and Development show that only 34 percent of climate finance is currently being used to help developing countries adapt to the impacts of climate change.

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A boy stands on a newly built sea wall that will protect Jakarta, Indonesia’s capital, from rising sea levels, and developing countries need more money to build those defenses

Most of public funding, 71 percent, is still provided in the form of loans rather than direct grants to countries, adding to poor countries’ debt burdens.

Navkot Dabi, head of climate policy at Oxfam International, called the move “extremely unfair”.

“Rather than supporting countries facing droughts, hurricanes and massive floods, rich countries are crippling their ability to cope with the next shock and increasing their poverty,” he said.

At the climate summit, will countries agree to fund losses and damage?

The issue of loss and damage was not on the agenda of last year’s climate conference.

After a series of smaller negotiations this year, it is now to be put up for discussion at the summit in Sharm el-Sheikh.

It is likely that agreement on specific funding will not be reached, but countries can provide specific details, e.g. B. How the money is paid out.

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